tv Countdown to the Closing Bell With Liz Claman FOX Business September 23, 2016 3:00pm-4:01pm EDT
oftentimes the statistics or facts don't bear out the way many accuse. tough situation, the election, there's a choice, and it's playing out right before us. trish: indeed it is, more intel come monday with the big debate. see you there monday night. pete, rod, thank you so much. liz claman sending it to you for the final hour of the day. liz: i want to let viewers know, we are keeping a very close eye on the situation. looking for the 2:12 long video. we'll check it, make sure it's appropriate to you and get it to you. we are watching the markets very closely. you got to believe that big tech is the center of attention at this hour as the markets wrap up a winning week but to the down side, no now records for the nasdaq, the dow and the s&p lower after three straight days of gains. one tech titan dealing with hear message of epic proportions, facebook billionaire mark zuckerberg under fire from advertisers for
vastly calculating the amount of time users of the social network spent watching video ads, by as much as 60-80% by one estimate. difference could be billions of dollars. we take it up with the ceo of the company that depends on giving its ad clients very accurate numbers. iheart media chairman and ceo bob pittman standing by live ahead of his huge music fest concert. fake bank accounts not winning any new friends for john stumpf but how much did he been the practice of it at branch levels. the lowly branch levels. one former employee says stumpf knew a lot and should face criminal charges and be in jail. the wells fargo whistle-blower is with me live. are you ready for a magical machine that makes fresh water out of thin air? how about something that
doesn't need soil? israeli innovations that help africa from hunger and more. less than an hour to the closing bell this friday. let's start the "countdown." and breaking news, dimension we're still keeping an eye on the situation in charlotte, north carolina, and waiting on that 2:12 videotape of what turned out to be another police involved shooting. as the temperature cools off friday, so does the rally on wall street. the market bears coming out of hibernation, all three major indices are in their clause. dow down about 99 point, the s&p lower by 9. the federal reserve is no longer stealing the spotlight. about technology and social media. one of the biggest moves on wall street belongs to twitter.
twitter skyrocketing. now up 20% in this final hour after reports that the microblogging site closer to moving to sell itself. who are the possible buyers? sales force and google parent alphabet reportedly the top contenders, both are down because this is a real struggling social media company and if you think about it, you're buying this company all kinds of problems with all kinds of users and do they have enough of the people who are signing up to be on twitter, sales force down 5.63%, alphabet about flat. a massive blunder for mark zuckerberg and company, shares of facebook lower after news that the company exaggerated key advertising metrics by leaving out uglier viewing data. advertisers noticed something fishy, investigated, facebook pulling off this practice for two years, and the one company that might be really having a worse day than facebook is yahoo! tangled up in what could
be the greatest data breach of all time. we have yahoo! shares moving lower by 3% after the internet struggler admitted that it had 500 billion accounts compromised. now to the governor of north carolina, pat mccrory, he's taking questions. let's listen in. >> improper for me to respond. i'm speaking as governor of north carolina, i have a responsibility as governor to ensure we meet the three goals, i'm going to do that in the most proper and respectful way because i care for the process, and i respect the problem, and so not knowing the position which he was speaking, it would be improper for me to respond, and i'm not going to bring politics into this issue whatsoever. yes, sir? >> governor -- is there a
microphone? >> governor, you mentioned the new law coming out,ing and most of us are familiar in the press corps are familiar with that law, but i take it this can't be handled under the new law. what kind of pitfalls do you encounter not having the new law in place? liz: we lost the feed from the governor of north carolina, but we do now have this. hillary clinton is tweeting about the situation, and we can put up the tweet at the moment. i have it right here, she is urging the release of the video. police should release the video of the keith lamont scott shooting without delay. we must ensure justice and work to bridge divides. keith scott was the man who was shot on tuesday as he was getting out of his car in a parking lot of a charlotte apartment complex, and this is a very complicated situation because there is video of the situation there.
was some question the police were saying, did he have a gun? it's apparently not clear if he does, we are watching the story at the moment. as soon as we get more and as soon as the video is cleaned up and prepared to be released, we'll see exactly what's on it and whether we can get it to you. back to the facebook story, while facebook is down 1.5%, this is a huge story that has been blown out about this company. ad agencies are about to unfriend facebook after the social media site, quote, overestimated key video metrics fotwo years. it didn't miss by a little. folks, they missed by 60-80%. in a post the company said they were only factoring in video views of more than 3 seconds. what does that mean? they told advertisers, look how great our site, is everybody is watching your ads for much longer than three seconds. they left out the ones where
people looked at it and x'd it out. ads are the lifeblood of media. how are ad buyers reacting and impact facebook financially? adam shapiro is in the newsroom with the very latest. >> reporter: before i begin, it's all about what did the advertisers buying time on facebook get on return and based on accurate data. it failed to accurately measure the time people spent viewing all the cat videos, right? and advertising agencies as well as customers are upset about this. facebook says it improperly measured viewing time in a way that made it appear as if people were spending longer periods of time watching video advertisements and segments posted on facebook. the "wall street journal" reported that one multibillion dollar global ad buying firm estimated that facebook calculations as you said were inflated video watching time by 60-80%. we spoke to publicist media saying the industry needs to
push for more third party measurement. this kind of think would verify user statistics. facebook issued its own statement, this ever had been fixed, it did not impact billing and we notified partners through our product dashboards and via sales and publisher outreach. while facebook says the mistake did not impact billing. fox business asked facebook specifically if they would refund money that advertisers paid based on the inflatedmetrics. facebook has not responded to our specific question. i got a respond from another multibillion dollar ad placement firm. this is group end. this is crucial, after careful review, we have determined that this error has had no impact on the pricing and audience deliveries of our campaigns, but liz, both publicist media and group m are urging the industry to come up with a new standard. they want more third party verification, in other words,
they don't trust facebook or google when they give them their user data. liz: got to be reliable. we put in a call to maurice levee. one industry that is massively supported by advertising, all forms of the media. ads are the lifeblood. let's get to the man who has run many advertising companies, chairman and ceo of iheartradio bob pittman joining us on the eve of a huge event, the iheartradio music fest. good to see you here. >> we miss you out here. what are you doing there? liz: please, i need to see drake, and thank you for putting sting as one of the headliners. >> u-2 as well and opening tonight with billy idol. liz: oh, yeah! white wedding. see i'm cool. what do you make of the facebook situation, for a guy
who's been at the forefront of rejuvenating radio advertising, i look at this and say what does it is a to a player like you when somebody like facebook is not giving accurate readings? >> look, i think there is no doubt that they are trying to do the right thing. it's a big company, it's impossible for everything to go right, i'm sure it didn't go right where you are, i can't say everything goes right where we are, and our job is to when we find it, fix it, acknowledge it and do the right thing and sounds like facebook is doing. that i sure am not going to pile on. my experience with facebook is very responsive as partner. i expect they are going to be very responsive to every advertiser they have and holding them to a standard of everything is perfect 100% of the time is not realistic. liz: you are being so magnanimous. you are a guy that is known for meeting with advertisers, you
spend a lot of time on madison avenue, you said we've got to give accurate readings to advertisers how much they hear, how much listeners for radio stations, 850 of them, and 19 million, congratulations, 19 million plus subscribers for streaming and service us that offer. you want to make sure. so how do you audit? how do you make sure your advertisers get the right data on what people are gleaning from them? >> we have nielsen measuring broadcast radio. triton measures our internal numbers. two points to look at there. but i think the whole industry seshgs eventually going to return on investment. you spend a dollar, how much you get back on advertising? and i think one of the things we focus on with people is i don't want to sell you spots. what i want to be is your partner in trying to achieve success. when somebody invests money with us, they owe success with whatever they're trying to do, brand awareness, product launch, rejuvenating a brand,
traffic in the store, traffic to a website. whatever they intend, we need to know it, need to measure it, and the good news is with data today we know what we're doing with it, and taeadvertisers are going to have us be responsible for the dollars on return they give us. that's going to be the sea change. liz: advertisers say you have the tools, why didn't you give us the accurate data numbers? you have a great tool you're rolling out. i looked at it, i understood it immediately. you're going to offer s subscription radio service, iheartradio+ and iheartradio access. you say you can reach a quarter of a billion people with the streaming services. what does that mean and how much would you charge for that? i'm going to push you on the price.
monthly fees and service is what everybody wants to know? >> you can push us. we reach a quarter of a billion people with broadcast radio alone. the only companies over two billion are facebook and google. we have the huge audience that most don't have streaming music service, any sort of streaming service, we've got the opportunity here to give this to them, and we're coming at it not from the lp or the cd as our ancestor but coming at it from radio. that's the way most people engage in music these days, and from that discover the music they're want. 70% say it's the main way to discover what they want in music collection. for us, the challenge is just the opportunity is just beginning. we've got 90% of the people have no service, and we think we're going to be that mass market, easy to use, easy to understand service. who wouldn't want to push replay on the radio for a song
they just heard or if you hear a song push a button and goes to feed and you save it. so you're connecting your radio directly to the music selection. liz: when i hear the wreck of edmund fitzgerald, i can hit save and hear it again and again and again. you are known as the coolest grown-up in room. congratulations, good to see you. >> thank you. liz: bob pittman, iheart chairman and ceo. if you go to lizclaman.com, talking to bob about concert in los angeles this weekend. who's there, how big the concerts have become for him and iheart media? closing bell, 45 minutes away. biggest laggard on the dow industrials is apple. down $1.66. but from 30,000 feet, looks like the dow in entirety might end positive for the week, and for every action there's an equal and opposite reaction. cybersecurity stocks are moving
higher in the wake of yahoo!'s mammoth data breach. impervia higher on takeover rumors. cyberarc, siren all higher. the israelis are known for watertight security, now on the edge of something much bigger. helping poor african and developing nations with israeli-created near magical business, water out of thin air, farms in a box. i'll show you the transformational ideas i got to see firsthand at united nations yesterday. wait until you see the mind blowing innovations, stay tuned. anything worth pursuing hard work and a plan.
you just stuck it in a drawer somewhere and forgot about it. until a dump truck hit your pickup truck and now you need a tow truck. does your policy cover the cost of a tow truck? who knows? you didn't read it. you can't even find it. the liberty mutual app with coverage compass™ makes it easy to know what you're covered for and what you're not. call liberty mutual for a free quote today at coverage compass™ gives you the policy information you need at a glance. available 24/7 on your mobile device. switch to liberty mutual and you could save up to $509. call
that's liberty stands with you™. liberty mutual insurance. . liz: let's get to oil, a crude awakening for oil at this hour. the after-market session on this friday. oil is down 3.25%. why? two major oil producers are clashing. saudi arabia and iran are supposed to meet face-to-face but butted hads ahead of it. neither side expecting a deal to limit opec oil output so the price goes down as the limit and the output go up. energy stocks are leading the s&p 500 and that's why it matters to you. you've got 36 ever the 37 energy names currently in the
red for the s&p. let's bring in our traders. they may not be trading in the physical commodity of oil but may own exxon or chevron or the integrated oils that are lesser known. matt, what does that mean for trade today or something else moving the markets. you're down, tell us what you see. >> you see oil lead us for the last months or years, even. we had oil rallying hard. the whole market up on the fed news. we're seeing a little retracement and the underlieings are causing the market to go down. not technology, not biotechnology, it's oil leading us. news in the tech space that could take us higher but can't overcome all the depth that the s&p has in oil. liz: looking at oil when you saw the intra-day chart, while tended down close to 4%, up off the floor, let me get to larry shover. a whole new slate of data but you have federal reserve
people, the presidents and the governors, out there talking, eric rosen gren, which people point to as the reason the market fell 400 points was out today and said you've got to rays rates gradually now. what does it do as it puts a cloud of question over the markets again? >> yeah, you know, there was like three or four mutterings from fed people. i think people stopped listening to it. every day, it's like who can say something to change the market. liz: but they don't, they listen and we listen, we have to report it, and look at markets? >> yes, we do have to report it. it's riddled with a lot of rumor. the fact is the whole mini temper tantrum has been arrested thanks to the bank of japan, fomc, yield dropped ten basis points, that causes people to go back to the way it was into the yield--driven market place. fundamentals aren't great but
they're not terrible, so people are at the financial repression system doing what they've done all year, and in the back of everybody's mind, the fed wants to raise rates and it's tricky. liz: keep in mind, the markets are looking to close to the upside today. i mean, for the week certainly not today, but for the week. have a good weekend. and by the way, we've always got our eye on your money, "wall street week," they're talking to former lehman brothers general counsel tom russo and former reagan budget director david stockman and "stossel" green town hall, with jill stein. the dow down 110. has to close down more than 150 to close lower by the week. we're watching all of the markets, your investments and so much more. and we've got the wells fargo whistle-blower coming up live. don't go away.
cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. . .
liz: shares of boeing right now just about flat. yesterday we reported live from the united nations that the u.s. treasury department has given aerospace giants boeing an airbus the green light to send and sell billions of dollars worth of commercial planes to iran. u.s. lawmakers swiftly reacting today about that, saying quote, we have grave concerns over the deal with iran. senior republican lawmakers specifically vowing they will continue to campaign against this deal, against this ability for boeing to sell a bunch of passenger jets, about 80 of them, at the count to iran. why? because iran has in the past used passenger jets to transport weapons and troops to terrorist groups. now as news of the deal quickly spread throughout the united nations, tensions, they kind of ran high yesterday as iran and israel's leaders spoke one after another. israeli prime minister benjamin netanyahu took his time in front of the u.n. general counsel to
denounce the iran nuclear deal. he said his country will never allow iran to develop nukes. literally just hours after that, look at prime minister benjamin netanyahu and what he turned his attention to. israeli business innovation. companies helping solve developing nation's problems were on full display at a jam-packed u.n. event. i was honored to emcee the israel technology in africa conference last night. dozens of world leaders, senior u.n. officials and joined israeli prime minister and ambassador. everything from water and solar. they presented their innovations one by one. one company in particular water gen demonstrated real magic come to life. >> this is amazing. it creates water out of the air around us? how? >> exactly. this is a new revolutionary creating making miracles. what people saw as miracle. now it is real.
it is making water from the air we breathe. liz: i will try it. this is by water gen. that is what netanyahu said. noter company showed off its solution to the spread of hiv/aids in africa. surgical free, adult circumcision. you heard that right. the ceo kind of joked actually, if anybody wanted to volunteer for a live demo. that got israeli prime minister benjamin netanyahu chuckling a bit and laughing. netanyahu side seriously that innovation a an important matter. >> we would like you to benefit from the fruits of the tree of knowledge that we have planted. we are your partners. this is what this meeting is all about. liz: 800 people jam-packed the room to hear about the innovation. hear about other ideas israelis are giving to africa, living
box, a farm in a box. go to liz claman dot-com, go to my facebook page to see more on this. the closing bell ringing in 30 minutes. dow jones industrials down 93 points on somewhat quiet friday. wells fargo ceo, nothing quite it from him. they're not only ones on the warpath. you will meet one of his former employees who says stumpf should behind bars. he is the whistle-blower on the wells fargo scandal. donald trump and hillary clinton are busy preparing for monday's big presidential debate. we'll tell you how billionaire mark cuban plans to be involved. richard goodstein and ron christie tell us what they're bracing for on debate night on monday. our political panel coming up. more countdown on the way. i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine.
i talked to my doctor and found a missing piece in my asthma treatment with breo. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. breo is not for people whose asthma is well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. do not take breo more than prescribed. see your doctor if your asthma does not improve or gets worse. ask your doctor if 24-hour breo could be a missing piece for you. see if you're eligible for 12 months free at mybreo.com. seconds can mean the difference between life and death.
♪ reporter: i'm lori rath mon on the floor of the new york stock exchange. dow is off 80 and the s&p 500 is down about seven points. the world's largest hotel company is now finally here. marriott completes its $13 billion purchase of starwood hotels. the chain will operate or franchise more than 5700 properties and more that a million room. as marriott's distribution more than doubles in asia and middle east. helping companies go public, so far this year banks have "taken 3" .7 billion in fees from u.s. equity deals. cheap call tall, interest rates are at historic lows. wells fargo tries to quell damage from the phony account damage. we'll hear from the one employee who alerted employees about the bank's shady cross lending practices. the wells fargo whistle-blower straight ahead. hey how's it going, hotcakes?
hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business.
>> breaking news. we have legal clearance from newly-released shooting in north carolina of keith lamont scott. we want to be sensitive, we're about to run it, it captures moments leading up and following his fatal shooting. his wife rikea it is her cell phone video. it has been provided to us by the family's attorneys. here it is. >> don't shoot him. don't shoot him. he has no weapon. he has no weapon. don't shoot him. [shouting] >> drop the gun. drop the gun. >> don't shoot him. don't shoot him. he didn't do anything. >> drop the gun claim. drop the gun! >> he doesn't have a gun. he has a tbi. he will not do anything to you guys. he took his medicine. >> drop the gun.
[bleep] [shouting] >> keith, don't let him break the windows. come on out of the car. >> drop the gun! >> keith. don't do it. [gunfire] >> drop the gun. >> keith get out of the car. keith, don't you don't you do it. keith. keith. keith. don't you do it. [gunfire] [bleep] >> did you shoot him? did you shoot him? did you shoot him? he better not be [bleep] dead. he better not be [bleep] dead. i know that much. i know that much he better not be dead. i'm not going to come near you, i will record. i i'm not coming near her. he better be alive, how about that? we're over here at, 9453 lexington court. these are the police officers that shot my husband. he better live. he better live. liz: that is the voice of -- >> he didn't do nothing to them.
liz: voice of keith lamont scott, 43 years old. the wife of keith lamont scott. her name is raika. police had shown up -- this is tuesday. they had shown up to a parking lot for another reason. they had a warrant to search another apartment. he was in his car. the police became suspicious. we still don't know exactly why. there was question whether, whether he was holding a gun. and we still don't know for sure. we don't have the police lapel video. we do not have the police lapel video. the police cam video. but, wife's video of it and she is yelling, he better be alive. she he -- he did not survive the flurry of gunshots. we heard north carolina governor pat mccrory talking about all of this. in the wake of that shooting there have been major riots. things calmed down at least for the moment but charlotte police, national guard, still have a presence there. north carolina highway patrol and when we have more
information we will make that available to you. we will be right back. so what else is new? how's your mother? umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.
now that fedex has helped us we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce.
liz: breaking news. and a lot of people thought we would ever see this. former presidential candidate ted cruz has officially thrown his support behind donald trump. texas senator posted this on facebook, after many months of careful consideration and prayer. david: searching my own conscience, i have decided that on election day i will vote for the republican nominee donald trump. let's bring in our political panel on this. democratic strategist, richard goodstein, former specialties assistant to former president george w. bush, ron christie. wow, ron, he had his chance at the cleveland convention for the republicans and led people
along, never did it. what do you think brought him to this point? >> i think ted cruz is trying to position himself to run for president again in 2020 or perhaps years after that. he knows he angered a lot of people in the republican base by not formally endorsing trump at the republican convention in cleveland. i think he is trying to be cute by half liz, having it both ways. people will look at this the cynical political move i think it is. liz: richard goodstein, what do you think hillary clinton thinks about that? look, ted cruz does bring with him a certain slice of the republican party and does it help donald trump and hurt hillary clinton in that regard? >> so cruz's big base was evangelicals. seems that while, reports that they were supporting trump anyway. liz: anyway. >> it wasn't lex -- intellectual crowd that got behind cruz that are frankly lost. when they see bob gates and colin powell and bush father and son and michael -- this whole raft of republican officeholders
who insist they are not going to vote for trump and list reasons because he is a big government, racist, seen phobe massagist con artist, national disgrace, that is what i think has impact on people who otherwise would look to cruz for leadership. cruz doesn't mat match the heft that all the people who don't endorse trump have. liz: we need to get out this as well. we're 72 hours from the debate. we just got released video of sheeting in north carolina where a man named keith scott was shot by police. another officer-involved shooting. i need to stress this is the cell phone video of mr. scott's wife. it does not show whether he had a gun, which is what the police have said, that the victim had. so, do you think, ron, that this become as topic for the debate? i don't see how it can't? we have riots in great american
city of charlotte over the past 48 hours and it is a topic of national conversation. >> no question about it. lester holt is respected journalist. he is watching as our millions of people around the country the unrest we've seen in charlotte for last couple days. this probably, if not the first question out of the chute would be way at top of the list, how do the candidates respond? what is their position not only this shoot being but of course with police involved shootings dealing with african-american men primarily? i think that will really something people want to hear. liz: richard, hillary clinton tweeted out, released a video, she obviously feels very sensitive about this, but i have to say, you start to hear a lot of people on both sides of the aisle think or say that president obama under his administration, race relations have really seemed to get worse, not better. >> well, look, it is complicated, liz, right? the fact of matter is if we had had a white president with these
kind of events going on -- liz: but we don't. >> would they have blown up more? the fact of matter is, outside of chicago, washington, baltimore, a couple other cities murder rates are close to all-time lows. you would never know that listen to donald trump who talks about drugs and, had this congressman yeerday talking about how blacks hate white people because they're jealous. the fact of the matter is, people look at hillary clinton being measured, right? and she is careful terminology when she talks about this. donald trump after events like this or after orlando put all self-reflexive, somehow he called it, right? i don't think that the is temperment that people want to look for in their president. liz: the temperment they want to see is law and order and support for police but also an open ear to the claims or feel that the african-americans have, ron, certainly some of them. look what is happening on our screen.
look at these riots. people were looting and we failed to see how stealing starbucks coffee or smashing through one of these buildings and stealing things makes any kind of statement about improving race relations. what happens monday night at the debate regarding that topic? >> well i think it is one that both candidates will have to tread very lightly on. for one thing. we can honestly say in the last eight years, uprisings in baltimore, ferguson, missouri, new york city. all across the country and i think people are using this opportunity to riot, to be up lawful, not to advance any justice for any of the perceived victims but of course to get something free on the take. it is just disgusting. unfortunately this president has not spoken out forcefully enough? why has the president been? why is he not urging calm and restraint. i haven't heard a word from him. liz: ron and richard, thanks for weighing. fox business is covering the
situation in charlotte and the hours leading up to monday night's presidential debate, wall to wall. lou dobbs kicks off coverage at hofstra university, monday, 7:00 p.m. eastern. neil cavuto takes you through the debate and into the spin room at 8:00 p.m. keep it here on fox business for all your presidential debate coverage. dow jones industrials, down 116 points. we are not ignoring the wells fargo story. wells fargo chairman and ceo john stumpf, handing over the resignation from the ceo seat but federal advisory council. that is a group of 12 banking executives who advise the federal reserve board. he is stepping down from that, keeping his job at wells fargo for now. the banking giant and he run into a huge wall, taking a black eye in the recent scandal where two million phony customer accounts were created by blank employees so they could hit their goals, their sales goals. the scandal resulted in firing
of 5300 employees and wells fargo paying $185 million fine. so far, the bank paid that penalty, many are saying pay a heavier penalty. john stumpf could walk away with a $200 million golden parachute if he is forced to leave wells fargo. joining me one. initial whistle-blowers tried to bring the scandal to light. a former wells fargo personal banker. currently a member of the committee for better banks. thanks so much for joining us. you're coming out pretty strongly here. you say that john stumpf should be pushed with criminal charges. he said he didn't know anything what was going on bank branches, once he was apprised of he tackled story. what do you say to that? >> well, liz, start with saying what kind of a boss that doesn't know what is going on in his company? it is really hard to believe what is coming out of his mouth, he said he doesn't know what is going on. he did not force these frau lent
accounts or fraudulent activities. -- fraudulent activities. when you have 53 people on the front line doing that, this is -- 5300 people, this is size after small village in our country. this is not a small number at all. these people were on the front line where they have no choice but losing their jobs or getting their paycheck at the end of a month of the company just put them with that risk, without proper training, without realistic goals that they could meet. this is systemic error. this is not just individual mistakes. it is -- comes from all the way from the top to the bottom. liz: a lot of people agree with you on that. you worked at a san diego branch of wells fargo. what were you told to do? what did you see? what did you experience? >> we were experiencing, you
know, on everyday basis that you have to meet a certain amount of goals. own average we have 15 solutions a day. a solutions is a sales product. a checking or savings account or credit cards, et cetera, et cetera. so, you have to meet these goals, whatever the situation are. if it's a holiday, just a regular day, if it's a monday, end of the month, you have to meet the goals, there is no excuse. if you don't meet the goals you're completely out. you might get one written warning just as courtesy from the company, but majority of these 5300 people got fired because they did not meet the goals. they were not fired because they were opening up funny accounts. that's the reality at wells fargo. we as bankers, we were spoken about it long time ago. you i personally delivered two petitions to wells fargo headquarters in minneapolis and in los angeles. liz: what did they say? >> these petitions were signed by 30,000 people at least
saying, telling wells fargo, hey you have to change your system. you have to lower the pressure on your employees. you have to lower the sales goals. we were completely ignored by wells fargo. i'm pretty sure -- liz: exactly. so you're saying, how could this not have crossed the desk of stumpf? he actually trumpeted the practice of solutions and crossselling and we want people to do more and more. let me finish asking you this. do you think he should be in jail? you said that. >> absolutely he should be in jail. he should be criminally investigated because this problem will go on forever. we're going to see tomorrow other banks doing the same. they could just get away with a small fine, like the one we have. $190 million for wells fargo is 190 bucks for me and you. liz: let me interrupt quickly before you go. carrey tolstedt who headed
branches like yours got $125 million payout. >> i didn't hear the question, i'm sorry. liz: carrie tolstedt who oversaw branches where you work got $125 million payout when she left. do you think she knew too? >> of urse she knew. she is directlsponsible for the area. she is one of the people pushing sales goals. they were weren't just looking for profit with no consequence, without proper training. it is just unrealistic when you put people on the front line and tell them to bring me that much money. i don't care what you do. that is pretty expected to happen. khalid, thank you. >> my pleasure. >> we'll see if anybody calls you to testify. one of the personal bankers and original whistle-blowers on the fang bank accounts. thank you so much. we'll be back at a final look at the markets. dow is down 106. please stay with me.
you're not a cook, if you don't cook. you're not a firefighter, if you don't fight fires. or a coach, if you don't coach. and you can't be our leader, if you don't lead. our next president needs to take action on social security, or future generations could lose up to $10,000 a year. we're working hard, what about you? hey candidates, do your jobs. keep social security strong. ♪ guys, what's happening here? hey nicole, this is my new alert system
for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. but thinkorswim already lets you create shhh.m alerts alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't nonly at td ameritrade.ink. it's a performance machine. engineering...
with this degree of intelligence... it's a supercomputer. with this grade of protection... it's a fortress. and with this standard of luxury... it's an oasis. introducing the completely redesigned e-class. it's everything you need it to be... and more. lease the e300 for $549 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. we ship everything you atcan imagine.n, and everything we ship has something in common. whether it's expedited overnight... ...or shipped around the globe, ...it's handled by od employees who know that delivering freight... ...means delivering promises. od. helping the world keep promises.
♪ liz: well the fed fueled lots of rallies but not today. investors betting on more than a 50% chance of a interest rate hike in december. so that means at the moment they're taking a breather but look at what the new york fed is seeing for fourth quarter gdp? they have downgraded their estimate now to a pathetic 1.2%. that's what it was, 1.4. now they're boeing down to 1.2%. it is really not very good. for q3 they're looking at 2.2%. how can the fed tighten in that environment and how should you invest? we have the ceo of kester private wealth services. are you concerned about what happens as we lead up to december? >> not concern. i think that would be too strong of a word but i think we've got -- we've got some hurdles. we have a little bit of a
witch's brew now, liz. we have seasonality. this is typically more volatile time for the year for the market, about 25% more more volatile. central bank valuations while they're not at stratospheric high. not anything we saw in the 2,000 peak. they have yet to come into focus because there hasn't been a catalyst to bring them into focus. if there was to be one between here and there, we could see some issues with that. liz: i don't know, valuations i think are a little bit rich. the s&p is trading 17.4 for forward earnings. the average is 14. let's move on from that. how you do you invest in what would you suggest people add into the witch's brew and make it taste better? >> yeah we almost got a wizard ofs thing going here and we're almost on the yellow brick road. it is not terribly complicated.
in the last 24 hours, a simple return to the weak dollar trade. [closing bell gings. you're looking at commodities, merging markets and industrials. you could look at all 11 sectors of s&p could not find anything on basis is overbought. liz: thank you. good ideas, rob. dow down 128. very close to the highs of the session. david: indeed. thank you, liz. melissa: stocks sinking in the final moments of trading. i'm melissa francis. david: happy friday. this is after the bell. we've got you covered on market movers. we have busy hour. here is what else we have. three days from one of the biggest events on the path to the presidency. we have new details how hillary clinton and donald trump preparing for their first debate.